Automakers and alliance partners Nissan Motor Co. (NSANF.PK, NSANY.PK) and Renault SA (RNSDY.PK, RNSDF.PK, RNT.L) are nearing a deal to resolve a standoff over changes to Nissan’s corporate governance, the Wall Street Journal reported, citing people familiar with the plans. The decision is likely to come ahead of Nissan’s shareholder meeting on June 25.
Renault, which owns 43.4 percent of Nissan, earlier had informed its plans to abstain from voting at Nissan’s ordinary general meeting of shareholders related to the proposed amendments to its Articles of Incorporation.
At the upcoming annual meeting, Nissan was expecting to vote through a long-overdue transition from having statutory auditors to a governance system of three committees covering nominations, remuneration and audit.
As per the report, both companies had clashed over Renault’s desire for its chief executive, Thierry Bolloré, to sit on the audit committee.
The proposed changes require a two-thirds majority to pass.
The companies now agreed that Bolloré would receive the audit-committee post. The compromise plan, if completed, would enable Renault to vote in favor of the governance changes at the Nissan shareholder meeting.